(d) information that you provide to us for the purpose of subscribing to our email notifications and/or newsletters (including your name and email address);

(e) information that you provide to us when using the services on our website, or that is generated in the course of the use of those services (including the timing, frequency and pattern of service use;

(f) information relating to any purchases you make of our goods / services / goods and/or services or any other transactions that you enter into through our website (including your name, address, telephone number, email address and card details;

(g) information that you post to our website for publication on the internet (including your user name, your profile pictures and the content of your posts);

(h) information contained in or relating to any communications that you send to us or send through our website (including the communication content and meta data associated with the communication);

(i) any other personal information that you choose to send to us; and

2.2 Before you disclose to us the personal information of another person, you must obtain that person's consent to both the disclosure and the processing of that personal information in accordance with the terms of this policy.

Using your personal information

3.1 Personal information submitted to us through our website will be used for the purposes specified in this policy or on the relevant pages of the website.

(h) send you email notifications that you have specifically requested;

(i) send you our email newsletter, if you have requested it (you can inform us at any time if you no longer require the newsletter);

(j) send you marketing communications relating to our business or the businesses of carefully-selected third parties which we think may be of interest to you, by post or, where you have specifically agreed to this, by email or similar technology (you can inform us at any time if you no longer require marketing communications);

(k) provide third parties with statistical information about our users (but those third parties will not be able to identify any individual user from that information);

(l) deal with enquiries and complaints made by or about you relating to our website;

(m) keep our website secure and prevent fraud;

(n) verify compliance with the terms and conditions governing the use of our website (including monitoring private messages sent through our website private messaging service);

3.3 If you submit personal information for publication on our website, we will publish and otherwise use that information in accordance with the licence you grant to us.

3.4 Your privacy settings can be used to limit the publication of your information on our website, and can be adjusted using privacy controls on the website.

3.5 We will not, without your express consent, supply your personal information to any third party for the purpose of their or any other third party's direct marketing.

3.6 All our website financial transactions are handled through our payment services provider, Paypal. You can review the provider's privacy policy at https://www.paypal.com/gr/webapps/mpp/ua/privacy-full. We will share information with our payment services provider only to the extent necessary for the purposes of processing payments you make via our website, refunding such payments and dealing with complaints and queries relating to such payments and refunds.

Disclosing personal information

4.1 We may disclose your personal information to any of our employees, officers, insurers, professional advisers, agents, suppliers or subcontractors insofar as reasonably necessary for the purposes set out in this policy.

4.2 We may disclose your personal information to any member of our group of companies (this means our subsidiaries, our ultimate holding company and all its subsidiaries) insofar as reasonably necessary for the purposes set out in this policy.

4.3 We may disclose your personal information:

(a) to the extent that we are required to do so by law;

(b) in connection with any ongoing or prospective legal proceedings;

(c) in order to establish, exercise or defend our legal rights (including providing information to others for the purposes of fraud prevention and reducing credit risk);

(d) to the purchaser (or prospective purchaser) of any business or asset that we are (or are contemplating) selling; and

(e) to any person who we reasonably believe may apply to a court or other competent authority for disclosure of that personal information where, in our reasonable opinion, such court or authority would be reasonably likely to order disclosure of that personal information.

4.4 Except as provided in this policy, we will not provide your personal information to third parties.

International data transfers

5.1 Information that we collect may be stored and processed in and transferred between any of the countries in which we operate in order to enable us to use the information in accordance with this policy.

5.2 Information that we collect may be transferred to the following countries which do not have data protection laws equivalent to those in force in the European Economic Area: the United States of America, Russia, Japan, China and India.

5.3 Personal information that you publish on our website or submit for publication on our website may be available, via the internet, around the world. We cannot prevent the use or misuse of such information by others.

5.4 You expressly agree to the transfers of personal information described in this Section 5.

Retaining personal information

6.1 This Section 6 sets out our data retention policies and procedure, which are designed to help ensure that we comply with our legal obligations in relation to the retention and deletion of personal information.

6.2 Personal information that we process for any purpose or purposes shall not be kept for longer than is necessary for that purpose or those purposes.

6.3 Notwithstanding the other provisions of this Section 6, we will retain documents (including electronic documents) containing personal data:

(a) to the extent that we are required to do so by law;

(b) if we believe that the documents may be relevant to any ongoing or prospective legal proceedings; and

(c) in order to establish, exercise or defend our legal rights (including providing information to others for the purposes of fraud prevention and reducing credit risk).

Security of your personal information

7.1 We will take reasonable technical and organisational precautions to prevent the loss, misuse or alteration of your personal information.

7.2 We will store all the personal information you provide on our secure (password- and firewall-protected) servers.

7.3 All electronic financial transactions entered into through our website will be protected by encryption technology.

7.4 You acknowledge that the transmission of information over the internet is inherently insecure, and we cannot guarantee the security of data sent over the internet.

7.5 You are responsible for keeping the password you use for accessing our website confidential; we will not ask you for your password (except when you log in to our website).

Amendments

8.1 We may update this policy from time to time by publishing a new version on our website.

8.2 You should check this page occasionally to ensure you are happy with any changes to this policy.

8.3 We may notify you of changes to this policy [by email or through the private messaging system on our website.

Your rights

9.1 You may instruct us to provide you with any personal information we hold about you; provision of such information will be subject to:

(a) the payment of a fee (currently fixed at GBP 10); and

(b) the supply of appropriate evidence of your identity (for this purpose, we will usually accept a photocopy of your passport certified by a solicitor or bank plus an original copy of a utility bill showing your current address).

9.2 We may withhold personal information that you request to the extent permitted by law.

9.3 You may instruct us at any time not to process your personal information for marketing purposes.

9.4 In practice, you will usually either expressly agree in advance to our use of your personal information for marketing purposes, or we will provide you with an opportunity to opt out of the use of your personal information for marketing purposes.

Third party websites

10.1 Our website includes hyperlinks to, and details of, third party websites.

10.2 We have no control over, and are not responsible for, the privacy policies and practices of third parties.

Updating information

11.1 Please let us know if the personal information that we hold about you needs to be corrected or updated.

Part 2: Cookies

About cookies

1.1 A cookie is a file containing an identifier (a string of letters and numbers) that is sent by a web server to a web browser and is stored by the browser. The identifier is then sent back to the server each time the browser requests a page from the server.

1.2 Cookies may be either "persistent" cookies or "session" cookies: a persistent cookie will be stored by a web browser and will remain valid until its set expiry date, unless deleted by the user before the expiry date; a session cookie, on the other hand, will expire at the end of the user session, when the web browser is closed.

1.3 Cookies do not typically contain any information that personally identifies a user, but personal information that we store about you may be linked to the information stored in and obtained from cookies.

1.4 Cookies can be used by web servers to identity and track users as they navigate different pages on a website and identify users returning to a website.

Our cookies

2.1 We use only both session and persistent cookies on our website.

2.2 The names of the cookies that we use on our website, and the purposes for which they are used, are set out below:

(a) we use session cookie on our website to recognise a computer when a user visits the website and track users as they navigate the website;

(b) we use secure cookie on our website to prevent fraud and improve the security of the website;

(c) Persistent cookies will be stored by a web browser and will remain valid until its set expiry date, unless deleted by the user before the expiry date;

Analytics cookies

3.1 We use Google Analytics to analyse the use of our website.

3.2 Our analytics service provider generates statistical and other information about website use by means of cookies.

3.3 The analytics cookies used by our website have the following names: _utma, _utmt, _utmb, _utmc, _utmv and _utmz

3.4 The information generated relating to our website is used to create reports about the use of our website.

(a) in Internet Explorer (version 10) you can block cookies using the cookie handling override settings available by clicking "Tools", "Internet Options", "Privacy" and then "Advanced";

(b) in Firefox (version 24) you can block all cookies by clicking "Tools", "Options", "Privacy", selecting "Use custom settings for history" from the drop-down menu, and unticking "Accept cookies from sites"; and

(c) in Chrome (version 29), you can block all cookies by accessing the "Customise and control" menu, and clicking "Settings", "Show advanced settings" and "Content settings", and then selecting "Block sites from setting any data" under the "Cookies" heading.

5.2 Blocking all cookies will have a negative impact upon the usability of many websites.

5.3 If you block cookies, you will not be able to use all the features on our website.

Deleting cookies

6.1 You can delete cookies already stored on your computer; for example:

(a) in Internet Explorer (version 10), you must manually delete cookie files (you can find instructions for doing so at http://support.microsoft.com/kb/278835);

(b) in Firefox (version 24), you can delete cookies by clicking "Tools", "Options" and "Privacy", then selecting "Use custom settings for history", clicking "Show Cookies", and then clicking "Remove All Cookies"; and

(c) in Chrome (version 29), you can delete all cookies by accessing the "Customise and control" menu, and clicking "Settings", "Show advanced settings" and "Clear browsing data", and then selecting "Delete cookies and other site and plug-in data" before clicking "Clear browsing data".

6.2 Deleting cookies will have a negative impact on the usability of many websites.

Cookie preferences

7.1 You can manage your preferences relating to the use of cookies on our website by visiting: controls below

Part 3: Our details

Data protection registration

1.1 We are registered as a data controller with the UK Information Commissioner's Office.

Our details

2.1 This website is owned and operated by Focus Reports Ltd.

2.2 We are registered in England and Wales under registration number 7676770, and our registered office is at Lynton House, 7-12 Tavistock Square, London WC1H 9LT, United Kingdom.

2.3 You can contact us by writing to the business address given above, by using our website contact form or by telephone on +441707828754.

Interview

with PC Kapoor, Managing Director, Bharati Shipyard Limited

22.06.2011 / Energyboardroom

Mr Kapoor, your background is in design and construction of various ships. Along with Vijay Kumar, you promoted Bharati Shipyard back in 1973, what later became one of the leading shipyards companies in India. What are the main milestones in the company’s development?

Bharati Shipyard started in 1973 as a partnership company and became a private limited company in 1976. Until 1991, date at which the group had its first direct export order from Cyprus, Bharati had been exporting but not directly – under the umbrella of Mazagon Dock. Later, in 1995, the company received an export performance award from the Engineering Export Promotion Council (EEPC). From this period on, Bharati had various export orders from the Middle East.
Bharati Shipyard Limited (BSL) came up with in Initial Public Offering (IPO) in December 2004. We went for a Foreign Currency Convertible Bond (FCCB) of 100 million dollars in December 2005. On the strengths of that, the company acquired in 2007 the entire Swan Hunter shipyard in the UK. We bought all assets, but of course we did not want to run the shipyard over there, as the costs were too high. Therefore we brought the assets to India, and most of the equipments have been commissioned in our various yards in the country.

There has been drastic changes in the clientele profile of Bharati: with 80% of Bharati’s products going to the Middle East in the year 2001 – 2005, the order book for Bharati in 2006 – 2008 comprised of 85% of export orders from West Europe. What explains the shift and today, how are we standing?

When an increasing number of orders came from Europe, we started getting fewer orders from the Middle East. Most companies in the Middle East look above all at the price of the products they are delivered, they are not very demanding in terms of quality.
Bharati has built up a reputation for good quality. We have orders from a large number of clients in France, Denmark, Norway, Holland, Germany, as well as from the USA and Argentina. As soon as we could supply Western Europe, we could no longer supply the Middle East because the prices they sought were not very interesting for us.
We also work with the Indian industry. For instance, the Shipping Corporation of India has placed an order with us for four offshore vessels. The first two are ready.

Great Offshore was one of the largest clients of Bharati Shipyard. After over a year takeover race with ABG Shipyard to acquire Great Offshore, Bharati was the clear winner with ABG pulling out at the last moment, and currently owns a 49.7% stake in Great offshore. What was the determining factor that allowed you to win the race?

ABG pulled out because we had far more shareholding than them. They could never have caught up with us.
Great Offshore belonged to the family-owned Great Eastern Shipping Company Limited. Most of the family sold their shares to us, so ABG was left only with small share holding.

The acquisition obviously offers you greater control over the order flow for your main business which is shipbuilding. What are the other rationales behind this strategic take over?

Bharati has been constructing ships for Great Eastern as well as for Great Offshore for the last twenty years. Major portion of the Great Offshore’s fleet that is currently operating has been constructed by us. There were a lot of interactions between the two companies before the acquisition, even before we had a single share.
In 2008, the promoter of Great Offshore considered that he did not have enough shares, so he bought more in the market by borrowing money and pledging the shares. But when the prices came down in 2008, he found himself in a very difficult situation. At that stage, we had orders of about 1300 crores with them – nearly 250 million dollars. We could not afford to let the company go down, so this is why we stepped in. As soon as we stepped in, ABG also stepped in.

As there is no plan to merge, to what extent are you able to create synergistic collaborations between the two entities?

There is a total collaboration between the two entities as the two businesses are very much related. We are primarily manufacturers of offshore vessels, and we do very little of merchant and cargo vessels.

Great Offshore offers drilling services, owning the only drilling barge available in India, offers logistic support services, ship repair, and engineering services. What has been driving the growth recently and what are the areas of priority?

Offshore vessels, drilling and logistics services have been the main drivers. Engineering is at the moment not a great revenue provider, neither are the helicopter services. Last year we did a couple of big projects; today there are a lot of tenders from ONGC, for which we are bidding.

What is Great Offshore competitive edge to get these contracts?

Bharati Shipyard is one of the two companies together with Larsen & Toubro (L&T) qualified by ONGC for Offshore fabrication. Great Offshore has the assets and the expertise to do the installation in the fields.
Ultimately, Bharati Shipyard and Great Offshore offer the ideal combination for a successful work. For the last project for ONGC, all the fabrication was done at our shipyard and the structures were taken and installed at site by the ships of Great Offshore and by their people.

Due to the circumstances of the last minute withdrawal of ABG, experts believe that Great Offshore has been acquired at too high a price, which compromised the financial performance of the group in the first quarter of 2010.
What is your assessment over this?

I do not think the company has been purchased at a very high price, if you consider the intrinsic value of Great Offshore. It was a high priced company because it was simply the largest offshore service provider in India. The open offer was above market price, but market price would have had relevance if we wanted to sell the shares.
There were problems at that time because the company had been headless for nearly two years. Though we had the shareholding, we could not become executive directors of it nor control the company because there were takeover norms to respect: until the process of open offer was completed, we could not enter the management of Great Offshore.

Ultimately Bharati Shipyard was on ‘board’ of Great Offshore. What have been the first actions taken and what new directions have you given to the company?

Great Offshore had a fair amount of old vessels, which we are now in the process of replacing. There is a new trend in the industry where companies require vessels with high specifications, especially for deeper water interventions. For instance, operations in the East coast of India and in Brazil require larger vessels.
Bharati Shipyard has decided to go on and build these vessels. We see a lot of growth opportunities in this area, both in the East coast of India and in Brazil.

In a recent announcement, you stated that “business outlooks for the offshore sector look promising. There is no alternative to oil in India, so more drilling activity is taking place. We are more domestically focused as there are reserves waiting to be exploited.” What is your action plan to grasp business opportunities in the Indian offshore sector?

We are going to grow our fleet. We are phasing out the older ships, as we also want to renew the fleet, a fleet that is adapted to deep water operations. It will not happen overnight, but since we took over, we have already purchased six vessels for five or six years, available in very attractive places. This purchase brings the total size of our fleet to 47 vessels, out of which 10 or 12 are to be phased out. We will double the fleet in the next five years, not in terms of number of vessels, but in terms of operating capacity.
We already have a lot of market in India, and there are many more opportunities for growth in the country. At least 75% of the market is taken by foreign ships. So even if we increase our fleet by a considerable amount, there is still scope in India. Indian vessels will always get priority over foreign vessels.

While parallels can be drawn between India and Brazil in terms of oil reserves in offshore, India has been lagging behind in exploration. There are more opportunities abroad at the moment. For instance, the Brazilian market has an excess of 30b dollars and is to be tapped by Indian companies, including Great Offshore. You said you were ‘looking to enter the market in a big way’. In concrete terms, what would be entering Brazil in a big way?

Before we enter Brazil, we need more vessels. The problem is that, similarly, their local vessels get the priority over foreign vessels for local operations. The country has a local content requirement: 70% of the local crew is required to be Brazilian, which pulls certain problems. A large part of the Brazilian crew would then operate on our vessels.

Tapping the Brazilian market should be a question of weeks or months, considering Varun Shipping already signed a contract for three AHTS and supply vessels with Petrobras. What is the time frame for Great Offshore operations in Brazil?

We are already doing a lot of market study, we have sent out our team over there, and we intent to take part in the Brazilian OTC market.
Although we know there is a lot of scope there, we do not want to just jump in without the proper preparation. We are still assessing the market, while a lot of players have jumped into it.

Looking at the international development of the company, Great Offshore already has a rep in Malaysia, operations in Qatar and in South Africa since 2005. What are the next countries to enter and how do you select your markets?

In addition to the countries you mentioned, we had operations in Egypt, Which was completed. We also operate in the North Sea with four vessels.
We select the markets according to the opportunities. Without taking chances in promising markets, you never build up an experience to your vessels.
We operated in Brazil and in Mexico, which are very difficult areas to operate in. It is like operating in the West coast of India during the Monsoon. Operations are tough for nine months a year over there, and there are three months of calm weather. There were also regulatory challenges which we have now overcome. There were cultural challenges earlier, as the Indian crew was said not to be able to withstand the harsh conditions, but by now we showed that we could.

The acquisition o Great Offshore is quite recent and you must have various objectives for both Bharati Shipyard and Great Offshore. What will be the main developments that will happen in the next five years under your leadership?

We will expand the fleet tremendously, as new vessels of higher specifications need to be constructed. A lot of offshore service providers expect these vessels, so there is an already existing demand for them. Therefore we see a fair amount of these vessels within our fleet in the next five years.

Facts & Figures

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